Monopoly Rights Can Reduce Income Big Time∗

  • Berthold Herrendorf, Arilton Teixeira
  • Published 2003

Abstract

We ask for which part of the observed cross–country differences in the level of per–capita income monopoly rights can account. We answer this question in a calibrated growth model with capital. Monopoly rights in the capital–producing sector shield labor market insiders from the competition by outsiders and permit coalitions of these insiders to choose… (More)

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